In a broad scope, the Hershman-Herfindahl Index (HHI) has been used to statistically gauge the overall level of competition level of various industries over an entire economy, for a given region or otherwise.
However, in contrast, many businesses within an industry (e.g. manufacturing, sales, or otherwise) use extensive research, which is generally time consuming, to acquire data regarding the existing competition within its industry and their overall exposure to that competition. In doing so, economists are often used to conduct such research and use various modeling techniques and calculations to measure and forecast the competition of the particular business within that industry.
In view of the extensive research time and cost, there exists a need for a cost effective and potentially more accurate system and/or method to allow individual businesses to analyze their competition level, and optionally their sales volume, of one or more product or services, or all products or services, within that industry and/or within market segments of the industry. In doing so, business or brand manufactures and/or parent companies (or otherwise) may use this analysis to improve profit margins and/or sales revenue by discontinuing underperforming products, product brands, and/or services and initiating manufacture of new products, product brands, and/or services that may be more profitable. This may reflect positively on the brand manufacture and/or parent company within the specific industry.
In one example, within the automotive industry, it may be desired to analyze one or more market segments (e.g. brand manufacturers, parent companies of brand manufactures, vehicle types or otherwise) to determine how a specific segment (e.g. a specific brand manufacturer, parent company of the brand manufacture, vehicle type) compares to other specific segments of the same company and/or competitors. This may be achieved, through the present invention, by comparing the competition and/or sales volume of the specific segments. Based on the performance of the specific segments, strategies can be formulated, and hypothetically tested, to determine how the specific segments may improve or digress, over time, given a change in products and/or services offered. In determining performance of the specific segments, potential changes may be considered to improve profit margins and/or sales revenue or the specific segments, brands and/or parent companies of the brands.
In view of the foregoing, it is an object of the present invention to provide improved and/or cost effective methods and systems for allowing businesses to improve their overall profitability, and/or longevity within an industry, by analyzing their position within one or more market segment.